COF & Commonfund Find Higher Foundation Returns in 2023

Last month the Council on Foundations and Commonfund released the version of their annual Study of Investment of Endowments for Private and Community Foundations, with data form 2023. From the press release:

The average 2023 calendar year return on endowed funds for the 182 private foundations participating in the Study was 12.6 percent, a marked increase from the -12.0 percent return reported for 2022. Similarly, for the 109 participating community foundations, the average 2023 return was 14.1 percent compared with -13.3 percent in 2022. Returns for both foundation segments swung more than 20 percentage points for the second year in a row (all return data reported net of fees).

The rebounded 2023 returns bolstered longer-term returns, which reflect foundations’ ability to finance their missions and program commitments going forward. Ten-year average annual returns remained steady at 7.1 percent (from 7.3 percent) for private foundations and 6.2 percent for community foundations (from 6.4 percent) in 2023.

Lloyd Mayer